The average industrial organisation spends 50 percent of its revenue on procurement. Yet, many procurement organisations rely on manual workflows and opaque spreadsheets despite the complexities of managing hundreds of suppliers and tens of thousands of articles crucial for production.
Tacto has developed a central operating system for future-proof supply chains in mid-sized industrials.
The AI-based software streamlines all procurement workflows, effortlessly ensures compliant and sustainable supply chains, and enables efficient material sourcing. It automates manual tasks, including those necessary for regulatory compliance with various Supply Chain Acts.
Without Tacto, organisations need to hire approximately two additional people solely to comply with upcoming ESG regulations.
Tacto's AI can also identify cost-saving potentials of up to 10 percent of procurement spend by analysing volatile price developments in key cost drivers (e.g., raw material and energy prices) across the entire article portfolio and comparing them to actual prices paid.
André Petry, CEO & Co-Founder, Tacto, shared:
“Supply chain disruptions and bureaucracy threaten our European economic backbone, 90 thousand mid-sized industrial companies, the ‘Mittelstand’.
Tacto addresses these existential threats by offering a technological solution to build future-proof supply chains – digital, efficient, and sustainable.
The funding round confirms our product's strength and allows us to double down on helping our customers stay competitive amid ever-increasing supply chain complexity.”
Luciana Lixandru, Partner, Sequoia Capital, said:
"With global supply chains under pressure like never before, business leaders know that their suppliers are as strategically important as their customers.
When we met André and the team, we knew Tacto would become the company to revolutionise procurement for these businesses, and Germany is the ideal place to start due to its strong ‘Mittelstand’."
Carlos Gonzalez-Cadenas , Partner, Index Ventures, shared:
“Supply chains are under unprecedented pressure from external factors and the rising complexity of modern industrial productions.
Tacto’s approach takes a lot of the pain and costs out, applying AI in smart ways to help companies handle the myriad of relationships and materials across the entire supply chain cycle.”
The funding will be used to speed up product development and invest significantly in AI to help customers automate all supplier and compliance workflows, create savings through optimising material costs, and reduce emissions via sustainable procurement.
Lead image: Tacto. Photo: Uncredited.